Indian export offers for hot dip
galvanized (HDG) coils have remained at $775-780/mt CFR US in the past week, though transaction activity has fizzled out in this period amid heightened nervousness over trade cases in the US, traders said on Thursday, May 19.
"The rise in transaction volumes seen earlier in the month has not been sustained. Most US buyers are nervous and cautious ahead of the ruling of the US International Trade Commission (US ITC) and buyers have pulled back from imports," a Mumbai-based trader said.
"Although most trade cases before the US ITC pertain to flat product imports from China, the aggressive stance of the US steel mills has also impacted sentiment among importing US steel distributors too," the trader said.
"Several US buyers told us that there has been a backlash among steel consumers in the US. But whether consumers' petition before the US ITC against trade cases will influence final ruling is yet not certain and our buyers prefer to stay on the sidelines in the meantime," the trader added.
Market sources said that, under the circumstances, lowering HDG export offer prices might not work in pushing volumes, not until the trade issues are resolved either way.
However, at least two traders said that Indian exporters are considering lowering offers by $5-10/mt as the Indian rupee is poised to breach the INR 67 to the dollar mark, pegged at INR 66.99 to the dollar on Thursday, May 19, and the exporters are looking to pass on the benefits of the weaker currency to buyers.